SBA & Treasury Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds
SBA Loans - What You Need to Know:
SBA Economic Industry Disaster Loan Information and Grant Options from LEAP
Here is a snapshot of what was covered regarding loans from the Small Business Administration:
Just about every single business in the country will be deemed eligible – they did not want to answer specific eligibility questions on the call. They would prefer the business owner apply and work through the process with a loan officer.
Size standards for a small business are the same as they are for a business to apply for an SBA loan in the first place – if you see slide 5 of the presentation there is a link to the SBA size standards.
Most important thing to remember is that the borrower is not obligated to take this loan at any point during the application process – I would encourage you to have them apply while they work through other opportunities. If something else comes along better, they can stop the application process and not close on the loan.
They estimate the current turnaround time to be 21-30 days, but ask for patience as this is an unprecedented time for their group as well. They have worked with areas affected by disaster since the 1950s, but have never dealt with one of this magnitude that has affected essentially every business in the country.
Borrowers who own rental properties may be eligible! This will be huge for a lot of borrowers in northern Michigan.
Borrower cannot list a PO Box – there must be a physical address.
This program is not meant for agricultural enterprises – those business owners will need to use USDA or another farm service agency.
Please check out PowerPoint for more information: https://bit.ly/3bBXnxs
SBA Disaster Loan Application – Webinar Update (March 26, 2020)
1. New access to online application: sba.gov/disaster
2. Estimate 30 days from application to funding
3. New site—-fillable pdfs, download, complete, save to desktop, sign, upload through box on sba.gov/disaster
4. If in doubt, apply and let loan officer assist client with what is needed or further questions
5. As of today, dropped credit score/worthiness requirement
6. As of today, dropped credit elsewhere questions, don’t have to prove denials
7. Applicant does not request an amount, describe to clients as an application for credit card—client applies, SBA decides the amount based on info client submitted and SBA will notify client
8. There is a process for reconsideration if client feels they need a different amount
9. Eleven month payment deferral—first payment due in month 12 after date of signing promissory note
10. If denied SBA loan, can ask for reconsideration and have 6 months to do so
11. No known minimum for $ approved
12. Client will get call from LO if more info needed. Otherwise, client will get approval notice with amount or denied communication
13. Having other conventional SBA loans, does make clients ineligible for disaster loan
14. Loans processed in order received
15. Additional forms on sba.gov/disaster. Clients can send with submission or wait to see if requested by LO
16. Complete SBA form P-019 with app
Small Business Administration (SBA)
Process for Accessing COVID-19 Disaster Relief Lending